Early trade in New York: Dollar down for fifth straight session

The dollar fell for a fifth straight session on Thursday, undermined by a recent slew of weaker-than-expected US economic data and this week's robust performance by the euro and the British pound.

The Federal Reserve, at its last monetary policy meeting, said it was on hold after cutting interest rates three times this year. But some analysts suggested that the Fed may have to reconsider that stance if US economic data continues to underwhelm going forward.

"You're looking at concerns that the US economy is yet again slowing down just based on some poor numbers out of both ISM (Institute for Supply Management) numbers," said Joe Trevisani, senior analyst at FXStreet.com.

Most currencies traded in tight ranges after turmoil induced by conflicting headlines on the fate of a preliminary US-China trade deal and the lack of clarity on whether any kind of agreement can be reached before Dec. 15, when additional US tariffs kick in on Chinese goods.

But focus was also on how much damage the trade war is causing and whether the signs of economic stabilisation seen in the euro zone and Chinese data can continue.

German industrial orders fell unexpectedly in October, data showed on Thursday.

In late morning trading, the dollar index was down 0.2% at 97.454.

The euro rose 0.2% versus the dollar to $1.1086, while the dollar slipped 0.1% against the yen to 108.78 yen.

Sterling is this week's best performer, up more than 1.5% this week to the dollar, as it appears likely that the ruling Conservative Party will win a majority in next week's election and end 3-1/2 years of Brexit-related uncertainty by taking Britain out of the European Union. The British pound traded at a new seven-month high of $1.3146 and extended gains against the euro to a new 2-1/2-year high of 84.31 pence The pound was last up 0.3% versus the dollar at $1.3138.